Key Takeaways
HSBC and ICBC target Hong Kong stablecoin licenses under strict rules. Yet with the U.S. GENIUS Act boosting dominance, Hong Kong’s uphill push for global influence remains uncertain.
Two of the world’s biggest banking giants, HSBC and the Industrial and Commercial Bank of China (ICBC), are preparing to enter Hong Kong’s fast-evolving stablecoin market.
As Hong Kong’s new stablecoin rules took effect, HSBC and ICBC signaled plans to seek Hong Kong Monetary Authority (HKMA) licenses. The regime drew global interest while sparking concern over its strict entry requirements.
Early interest meets strict compliance
According to the Hong Kong Economic Journal, ICBC’s Hong Kong subsidiary confirmed its intention to join HSBC and Standard Chartered as frontrunners.
By the end of August, 77 institutions had expressed interest, though several warned the standards were tougher than expected.
The HKMA will initially issue only a limited number of licenses in the first round. However, the rollout has not been without turbulence.
Here’s why – When the Stablecoin Ordinance took effect on the 1st of August, Hong Kong-based issuers saw token values drop as much as 20% in a single day.
Additionally, in mid-August, Hong Kong’s Securities and Futures Commission (SFC) tightened crypto custody rules. It banned smart contracts in cold wallets and warned against hype-driven speculation
However, under the new rules, offering or promoting unlicensed fiat-referenced stablecoins to retail investors is a criminal offense. And that definitely gives us a peek into the government’s firm stance on compliance.
Can Hong Kong rival the U.S. stablecoin market?
Global stablecoin momentum accelerated after the U.S. passed the GENIUS Act in July 2025, establishing a unified federal standard for fiat-backed tokens.
Alongside Europe’s MiCA rules, the legislation set a global benchmark expected to reshape the sector.
By setting a unified, nationwide standard for fiat-backed stablecoins, the U.S. reinforced its dominance in the sector while creating pressure for other jurisdictions to keep pace.
Yet, despite the progress, Hong Kong faces structural, geopolitical, and economic challenges limiting its global stablecoin influence.
Thus, as the race for stablecoin leadership accelerates, Hong Kong’s cautious, Asia-focused approach will need to evolve if it hopes to rival the sweeping regulatory clarity now emerging from the U.S. and Europe.
